On the Fundamentals of Risk Controlling in the Public Sector

The research examines the critical role of proactive risk controlling in enhancing the quality and effectiveness of public finance management, particularly in the context of evolving global landscapes. Recognizing the increasing complexities and uncertainties faced by governments worldwide, this chapter advocates for a systemic approach to risk management as an essential component of good governance. It analyzes the unique challenges and opportunities associated with risk controlling in the public sector, highlighting the need for tailored approaches to risk identification, assessment, and response due to the distinct framework of social responsibility and public trust. Drawing on best practices, this chapter explores various frameworks and methodologies applicable to this context, delving into risk identification processes and emphasizing context-specific considerations during risk assessment. Finally, this chapter proposes strategies for integrating risk controlling into existing public management structures to cultivate a culture of risk awareness, ultimately promoting efficient resource allocation, improved service delivery, and increased public trust.